Kroger 2013 Annual Report Download - page 99

Download and view the complete annual report

Please find page 99 of the 2013 Kroger annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 152

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152

A-26
The tables below illustrate our significant contractual obligations and other commercial commitments,
based on year of maturity or settlement, as of February 1, 2014 (in millions of dollars):
2014 2015 2016 2017 2018 Thereafter Total
Contractual Obligations (1) (2)
Long-term debt (3) . . . . . . . . . . . . . . . . . . $1,616 $ 524 $1,267 $ 708 $1,003 $ 5,662 $10,780
Interest on long-term debt (4). . . . . . . . . . 427 364 349 321 278 1,352 3,091
Capital lease obligations . . . . . . . . . . . . . . 62 57 53 52 43 349 616
Operating lease obligations . . . . . . . . . . . 832 770 708 634 563 3,101 6,608
Low-income housing obligations . . . . . . . 3 — — — — — 3
Financed lease obligations . . . . . . . . . . . . 13 13 13 13 13 111 176
Self-insurance liability (5) . . . . . . . . . . . . . 224 131 88 52 26 48 569
Construction commitments . . . . . . . . . . . 313 — — — — — 313
Purchase obligations . . . . . . . . . . . . . . . . . 549 135 82 57 39 87 949
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,039 $1,994 $2,560 $1,837 $1,965 $10,710 $23,105
Other Commercial Commitments
Standby letters of credit . . . . . . . . . . . . . . $ 209 $ — $ — $ — $ — $ — $ 209
Surety bonds . . . . . . . . . . . . . . . . . . . . . . . 310 — — — — — 310
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 519 $ — $ — $ — $ — $ — $ 519
(1) The contractual obligations table excludes funding of pension and other postretirement benefit
obligations, which totaled approximately $125 million in 2013. This table also excludes contributions
under various multi-employer pension plans, which totaled $228 million in 2013.
(2) The liability related to unrecognized tax benefits has been excluded from the contractual obligations
table because a reasonable estimate of the timing of future tax settlements cannot be determined.
(3) As of February 1, 2014, we had $1.2 billion of borrowings of commercial paper and no borrowings under
our credit agreement and money market lines.
(4) Amounts include contractual interest payments using the interest rate as of February 1, 2014, and stated
fixed and swapped interest rates, if applicable, for all other debt instruments.
(5) The amounts included in the contractual obligations table for self-insurance liability related to workers’
compensation claims have been stated on a present value basis.
Our construction commitments include funds owed to third parties for projects currently under
construction. These amounts are reflected in other current liabilities in our Consolidated Balance Sheets.
Our purchase obligations include commitments, many of which are short-term in nature, to be utilized in
the normal course of business, such as several contracts to purchase raw materials utilized in our manufacturing
plants and several contracts to purchase energy to be used in our stores and manufacturing facilities. Our
obligations also include management fees for facilities operated by third parties and outside service contracts.
Any upfront vendor allowances or incentives associated with outstanding purchase commitments are recorded
as either current or long-term liabilities in our Consolidated Balance Sheets.
As of February 1, 2014, we maintained a $2 billion (with the ability to increase by $500 million), unsecured
revolving credit facility that, unless extended, terminates on January 25, 2017. Outstanding borrowings under
the credit agreement and commercial paper borrowings, and some outstanding letters of credit, reduce funds
available under the credit agreement. In addition to the credit agreement, we maintain two uncommitted
money market lines totaling $75 million in the aggregate. The money market lines allow us to borrow from
banks at mutually agreed upon rates, usually at rates below the rates offered under the credit agreement. As of
February 1, 2014, we had $1.2 billion of borrowings of commercial paper and no borrowings under our credit
agreement and money market lines. The outstanding letters of credit that reduce funds available under our
credit agreement totaled $12 million as of February 1, 2014.